Objective 1
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Objective 1 Areas |
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Objective 2 Areas |
"...to promote the development and structural adjustment of regions whose development is lagging behind..."
- What is the Objective 1 Programme?
- Which Projects are eligible?
- State Aid restrictions
- How much money is available and when?
What is the Objective 1 Programme?
The Objective 1 Programme runs from 2000 to 2006. In England, three areas have been designated for Objective 1 support. These are:
Under Objective 1 there are 4 separate EU funds to be drawn on:
- European Regional Development Fund (ERDF)* - this is the responsibility of the Office of the Deputy Prime Minister and is administered by the Government Offices for the Regions.
- European Social Fund (ESF) *- this is the responsibility of the Department of Education and Employment and administered by the Government Offices for the Region.
- Financial Instruments for Fisheries Guidance (FIFG) - this is the responsibility of, and administered by, Department of Environment, Food and Rural Affairs (Defra). Find out more about FIFG in England.
- European Agricultural Guidance and Guarantee Fund (EAGGF) - this is the responsibility of and administered by the Department of Environment, Food and Rural Affairs (Defra).
*These links are not part of the Defra web site, and we can take no responsibility for their content.
European Agricultural Guidance and Guarantee Fund
The purpose of EAGGF is as follows:
- to help to preserve the link between agriculture and the land;
- to improve and support the competitiveness of agriculture as a key activity in rural areas;
- to ensure diversification of activities in rural areas;
- to help retain people in rural areas; and
- to preserve and improve the environment, the landscape and our rural heritage.
Which Projects are eligible?
Each has produced a Single Programming Document (SPD) and Programme Complement which comprisees a series of measures. Each Programme divides areas for which support is available into Priorities (e.g. SME Micro-Business Support, Community Regeneration and sectoral adjustment). Priorities are further subdivided into Measures (e.g processing and marketing of agricultural products, promoting the adaptation and development of rural areas, training).It is against the priorities and measures contained in the Objective 1 area SPD (amongst other criteria) that we will assess applications.
We will also take full account of the more detailed agricultural and related sector strategies within each Objective 1 area.
We would encourage you to look at your local SPD, Programme Complement, and local sector strategies which you should read before making an application. You should contact the local Defra Secretariat dealing with that Objective 1 area's Priorities and Measures which use EAGGF funds are included in this booklet at Annexes I-III. You will need to refer to these when making your application, and your project must fall within one, or more, of these measures. You should also be aware of the requirements of the Rural Development Regulation as outlined in your regional chapter of the England Rural Development Programme as this also applies in Objective 1 areas.
A number of criteria will be applied when assessing projects. The following is a checklist of basic eligibility criteria.
The Project must:
- normally occur within the Objective 1 area. (However, it is still worth discussing your project with Defra/Farming and Rural Conservation Agency (RDS) staff as you project may have benefits within the Objective 1 area even if based elsewhere);
- undertake activities which normally fall within the scope of the EAGGF element of the SPD;
- not be eligible for funding under or fall within the scope of another EU funded scheme;
- having a funding package which conforms to the ceilings applicable, appropriately match funded with UK public money and private funds; and
- be consistent with the State Aids regulations.
In addition the project should:
- not duplicate existing, or other planned, activity or expenditure;
- quantify outputs and provide details of clear and attainable targets;
- demonstrate an additional and sustainable benefit to the economic development of the area;
- require the minimum grant necessary to enable the project to proceed ("gap funding"); and
- provide good value for money
A range of project selection criteria which examine the quality of the project and its fit with SPD, and which will help to measure the desirability of the project, will be applied as established by the Objective 1 area's Programme Monitoring Committee. Information on the scoring system which is being used in each Objective 1 area is available from your local Defra Secretariat. Projects must also help meet the objectives of the England Rural Development Programme.
State Aid restrictions
There are a number of restrictions which apply to aid from government sources. Aids on investment in agricultural holdings should contribute to the improvement of agricultural incomes and of living, working or production conditions:
- to reduce production costs;
- to improve and/or re-deploy production;
- to increase quality
- to preserve and improve the natural environment, hygiene conditions and welfare standards; and/or
- to promote diversification activities
Further information on State Aids restrictions can be obtained from your local Defra Secretariat.
How much money is available and when?
There are different amounts of money available in each Objective 1 area as each has a specific budget to support projects. Applicants should be aware that the level of funding available under Objective 1 is limited and that it is therefore a competitive programme. If you application is successful you will receive an allocation of a percentage of the total eligible cost of your project. Grant can only be paid once expenditure has actually been defrayed so any grant to a project is paid in arrears on receipt of a complete an accurate claim and an acceptable progress report (see below).
All EU funds have to be 'match funded' by UK government (i.e. public) money so you will need consider where the match funding you need will come from. This will depend on the type of project you wish to undertake. Defra has some funds available to provide match funding and you can apply for this on the same form.
Any offer of grant that you receive will be a percentage of the total eligible costs of your project. You will usually need to have identified sources of private match funding and demonstrated that these will be forthcoming. If you cannot match the EAGGF funding pound for pound with UK public funding or lever in private sector funding we will be unable to pay your claim.
Assistance is given in the form of grants towards the costs of projects. These grants are set at a level which is the minimum required to enable the project to go ahead. As a general rule, however, the EC contributes no more that 50% of the eligible cost, although it can be as much as 75% for projects in Objective 1 regions.
The rest of the funding, known as 'match funding' comes from other sources such as local authorities, Regional Development Agencies (RDAs), Government schemes including the Single Regeneration Budget, other public bodies and the private sector.
An information guide about potential sources of match funding can be found on the DTI website.
Page last modified:
5 September, 2005
Page published: 10 December, 2002